Shares of Tesla fell more than 6% in trading Tuesday morning after CEO Elon Musk said an employee conducted "extensive and damaging sabotage" against the company.

"I was dismayed to learn this weekend about a Tesla employee who had conducted quite extensive and damaging sabotage to our operations," Musk said in an email obtained by CNBC. "This included making direct code changes to the Tesla Manufacturing Operating System under false usernames and exporting large amounts of highly sensitive Tesla data to unknown third parties."

The email to all employees came on the heels of another company-wide memo about a small fire in Tesla's Fremont, California factory that shut down its body production line for several hours on Sunday, CNBC reported. Tesla has been racing to meet Musk's goal of producing 5,000 Model 3 sedans per week at that factory.

The proposed tariffs come after China responded by matching the US's preciously announced tariffs on $50 billion worth of goods set to be enacted on July 9. Tesla sold more than $2 billion worth of cars in China in 2017, accounting for nearly 20% of its total revenue.

Despite Tuesday's slump, shares of Tesla have seen a significant rally in June, rising more than 20% after Musk promised that the "short burn of the century" would come soon. The stock last week passed Wall Street's average price target of $317 for the first time in months following news of extensive layoffs and restructuring. Yet Wall Street's bulls and bears remain as opposite as ever on Tesla's future.

"Our clients remain highly polarized on the name with the key theme being whether TSLA can execute on a technology-driven innovation strategy in a capital intensive, durable goods, safety-constrained end-market," Colin Rusch, an analyst at Oppenheimer said in a note Tuesday.